Bond placement

LSR Group places bonds worth RUB 2 bn

Today, on 24 March 2011, OJSC LSR Group (LSE: LSRG; MICEX, RTS: LSRG) fully placed interest-bearing non-convertible rouble bond. The total size of the issue was RUB 2 billion. The bonds were placed through public subscription. The duration period is 3 years, the put option is not to be executed. The rate for the duration period was set at RUB 9.5%

Bond information:

Issuer: OJSC LSR Group

Series: BO-03

Identification number: 4B02-03-55234-B as of 16 February 2011.

Principal amount: 2,000,000Denominations: RUB 1,000

First coupon yield: RUB 47.37 per bondDuration: 1092 days from the placement date

Stock Exchange: MICEXLead managers: Uralsib Capital and Sberbank of Russia

Elena Tumanova, CFO of LSR Group, commented: «New placement corresponds to our strategy to attract long-term financing and reduce our debt costs. All proceeds from the placement will be used for our business expansion and development».

Boris Ginzburg, Executive Director, Executive Director, Head of Fixed Income at URALSIB Capital, commented:

"This placement of LSR Group's bonds attracted many investors - more than thirty accounts were involved in the placement - this ensured the most favorable conditions for the issuer. The fact that the placement took place without a premium to the secondary market, tells that the investors positively perceive LSR Group's business, and also supported by LSR Group's impeccable reputation on the debt market".

 Yesterday Fitch Ratings agency assigned this bond issue an expected "B(exp)" rating and also upgraded long-term foreign currency Issuer Default Rating (IDR) of OJSC LSR Group from "B-" to "B", stable outlook.

Note to Editors:

OJSC LSR Group is a real estate development and building materials company founded in 1993 and operating in a number of complementary market segments. Its core business areas are production of building materials, real estate development and panel construction.LSR Group's main operations are located in St. Petersburg, Moscow, Yekaterinburg and Ukraine.In 2009, the sales revenues of LSR Group were RUB 51,024 million (IFRS).LSR Group is a public company, with its GDRs traded on the London Stock Exchange and its ordinary shares traded on MICEX and RTS.

For more details please contact:LSR Group Press ServiceTel.: +7 812 314 10 44Fax: +7 812 458 83 72E-mail: [email protected]www.lsrgroup.ru